Chapter 32 The Salon Business

1. Chapter 32 The Salon Business

2. Being both a great artist and a successful business person= • The greater you chances • of success • Entire books have been • written • Following information is • a general overview Weymouth.ac.uk

3. Become your own boss: • Owning your own salon • Booth rental-not legal in PA. See “Did you know?”

4. Beautyschoolsdirectory.com Salonbootcamp.com Discoveryspas.com

5. Opening your Own Salon • Huge undertaking • *financially • *physically • *mentally • Face challenges that are complex and unfamiliar

6. Kqtv.cityvoter.com Thehairem.biz

7. before opening your doors decide: • *what products to carry • *what types of marketing and promotions • *best methods and philosophy for running the business • *whom to hire • Consider the following basic issues and perform basic tasks

8. Create a Vision and Mission Statement for the Business Goals Vision Statement: long-term picture of what the business is to become and what it will look like when it gets there Mission Statement: description of the key strategic influences of the business *market it will serve *services it will offer *quality of those services

9. Goals: set of benchmarks that help you to realize your mission and your vision • Set short-term and long-term goals for the business

10. Create a Business Timeline Year One: *determine and complete all aspects of starting the business Years Two-Five: *tending to the business, its clientele, employees for growing and expanding

11. Years Five-Ten-if successfully achieved: *Add more locations * expand the scope of the business *construction of larger space Years Eleven to Twenty: *move from being a working cosmetologist into a full-time manager

12. Years Twenty Onward: *consider selling or *changing it in some way (junior partner)

13. Garysplacesalons.com

14. Kristirushing.com Brightonlife.com B2salon.com

15. Determining Business Feasibility • Means addressing certain practical issues • *do you have a special skill or talent? • (sets your salon apart) • *does the town offer the type of clientele you want (products and services you want to offer)? • *how much money is needed to open? • *is funding available?

16. Choose a Business Name The name: *explains what it is *identify characteristics (sets apart) *influences how clients perceive the business *creates a picture in client’s mind

17. Colourtube.com Behindthechair.com

18. Choose a Location • Good visibility • High traffic • Easy access • Sufficient parking • Handicap access

19. Written Agreements • Many written agreements and documents needed • *leases • *vendor contracts • *employee contracts • *and more

20. For legal purposes • *who does what • *what is given in return • Must be able to read and understand them

21. Business Plan • written description of your business • ~today • ~future • Agreement with yourself-not legally binding • However, needed to obtain financing

22. Look at printed business plan document from Epiphany Salon Blogs.nailsmag.com

23. Includes description: ~business ~services provided ~demographics *race, age, income, educational attainment ~salaries and benefits ~pricing structure Interstellar-solutions.co.uk

24. Expenses • ~equipment ~ supplies • ~ repairs ~ advertising • ~taxes ~insurances • ~projected income and overhead expenses

25. Business Regulations Laws • comply with all local, state, and federal regulations and laws • contact local authorities • ~business licenses • ~other regulations • *zoning • *business inspections

26. Comply with all federal Occupational Safety and Health Administration (OSHA) • Manufacturer’s Safety Data Sheets • (MSDS)

27. Insurance • must purchase insurance • ~malpractice • ~property liability • ~ fire • ~burglary • ~ theft • ~business interruption

28. disabilities policy Safety manual.com Oemeyer.com

29. Salon Operation • Running of the business • Record Keeping • Maintain accurate and complete records of all financial activities • Salon Policies • Rules and regulations • Everyone is treated fairly and consistently

30. Types of Salon Owners • Individual ownership: • Make your own rules • Meet all duties and obligations of running a business • Sole proprietor is the owner and manager • determines policies • assumes expenses • receives profits/bears all losses Blogs.nailsmag.com

31. Salonsachet.com Socialmiami.com

32. Partnership • more opportunity for increase investment • ~growth • can be magical or a disastrous • Ex. Urban Edge • John Paul Mitchell Systems

33. Partnership: • Two or more people (not always equal) • ~more capital or money • ~pool skills and talents • ~share work • ~responsibilities • ~decision-making • ~must assume one another’s liability or debts

34. John Paul DeJoria Paul Mitchell Paul mitchell.com Urbanedge.boomtime.com

35. Corporation: ownership controlled by one or more stockholders • Incorporating • *protects your personal assets • *saves money in taxes • *greater business flexibility • *makes raising capitol easier

36. Characteristics of corporations: • Raise capitol by issuing stock certificates or shares • Stockholders-has ownership interest • Sole stockholder or many stockholders

37. Meetings required to maintain corporate status • Income tax is limited to the salary you draw-not the profits • Costs more to set up • *formation fees • *filing fees • *annual state fees • Required to pay unemployment insurance taxes on salary (sole proprietor or partner do not)

38. Ex. Great Clips Haircuttery

39. Strmsigns.com Haircuttery.com http://bethlehem.patch.com/listings/holiday-hair-7#photo-2225893

40. Franchise Ownership • Contractual relationship • Operating under the franchisor’s trade name in exchange for a fee • Under the franchisor’s guidance and stipulations

41. Advantages: • Known name and brand recognition • Franchisor does most of the marketing • Protected territories

42. Concerns: • Agreements in what you can and cannot do • Be sure to research • Have a attorney read the contract/explain • Must pay the fee (successful or not)

43. clickedbmx.com thelifeofrylie.com

44. Business Plan • Includes: • Executive Summary • Vision Statement • Mission Statement • Organizational Plan • Marketing Plan • Financial Documents • Supporting Documents • Salon Policies

45. Purchasing an Established Salon • excellent opportunity/look at all sides of the picture • Seek professional assistance from an accountant and a business lawyer

46. Agreement should include: • Financial audit • *actual value of the business • *may not retain all of the former owner’s clients without help from former owner • written purchase • sale agreement

47. complete and signed statement of inventory • ~value of each article • initiate an investigation • ~default in the payments of debt • identity of owner

48. Use of name and reputation for a definite period of time • Disclosure of all information ~clientele • ~purchasing • ~service habits • Disclosure of conditions of the facility

49. Noncompete agreement- seller will not work in or establish a new salon within a specific distance • Employee agreement-will the employees stay with the business

50. Drawing up a Lease • your own business • ~not always the building • Rent or Lease-specify clearly • ~who owns what • ~who is responsible for repairs and expenses